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The city will inspect community facilities being constructed to ensure that the community facilities are constructed in accordance with the engineering plans. The developer must pay the construction inspection service fees set forth in § 2-321 of the city code to the city to cover the city's cost for performing inspections.
(Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)
(a) The city will perform bacterial testing on water mains, firelines and fire hydrants being constructed by the developer. The developer must pay the water testing lab fee set forth in § 2-321 of the city code to the city to cover the city's cost for the tests. The water testing lab fee does not include the time required for the city's inspectors to collect and deliver water samples, which will be included in the construction inspection service fee.
(b) Tests will be performed on every:
(1) One thousand feet of water mains;
(2) Dead-end of a water main;
(3) Branch at a minimum of one joint of pipe for water mains;
(4) Fireline; and
(5) Fire hydrant.
(c) Two consecutive passing bacterial tests must be obtained before the city can accept the water mains, firelines and fire hydrants.
(Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)
(a) The city will calculate the estimated cost of administrative material testing service fees, construction inspection service fees, and water testing lab fees based on the engineering plans and construction schedule submitted to IPRC for first review. The city will deliver a copy of the written estimate of the fee to the developer with the comments from IPRC on the engineering plans submitted for first review.
(b) The developer must pay the estimated cost of the administrative material testing service fees, construction inspection service fees, and water testing lab fees to the city before the CFA is executed. If there is city participation in the project, the city will be responsible for administrative material testing service fees, construction inspection service fees, and water testing lab fees attributable to the city participation.
(Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)
The city uses standardized forms for community facilities agreements and financial guarantees. The developer may request changes to the language in the forms. The city is not required to accept the changes requested by the developer.
(Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)
(a) The term for completing construction of community facilities pursuant to a CFA shall be two years. The city and the developer may agree upon a term of less than two years.
(b) If construction of the community facilities has commenced before the end of the term, the CFA may be amended to extend the term for up to one additional year. The maximum term of a CFA may not be more than three years.
(c) If construction of community facilities pursuant to a CFA has not begun 90 days before the end of the term, the city may send written notice to the developer of the city's intent to use the developer's financial guarantee to construct the community facilities. If the developer and the city do not agree on an extension of the term within 60 days before the term expires or if the term of the CFA is already three years, the city may use the developer's financial guarantee to construct all or some of the community facilities contemplated by the CFA.
(Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)
All requests to amend or assign an executed CFA must be submitted by the developer to the development coordination office. The developer must pay the CFA amendment fee set forth in § 2-321 of the city code to the city before an amendment or a consent to an assignment of a CFA will be executed by the city. An amendment or assignment of a CFA shall be at the discretion of the city.
(Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)
The developer must provide the city with adequate financial security to guarantee the developer's obligations under the CFA, which include, but are not limited to, the developer's obligations to construct all the community facilities contemplated by the CFA and the payment by the developer to all contractors and material suppliers with whom the developer has a contract for the project. No construction of community facilities shall ever begin until the financial guarantee has been delivered to and approved by the city and the CFA has been executed by the developer and the city.
(Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)
(a) One or more of the following types of financial guarantees shall be provided by the developer to the city to guarantee the developer's obligations under the CFA:
(1) Development bond. A development bond in the amount of 100% of the total amount of the developer's share of the construction costs in the CFA. The development bond shall be executed by the developer and guarantee that the developer will construct the community facilities and pay all contractors, material suppliers, and equipment suppliers for the project. The development bond must meet the requirements of Tex. Local Government Code Chapter 2253, and the Texas Insurance Code. The development bond may be required to cover the city's participation in the CFA if the construction contracts are not publicly bid;
(2) Cash deposit. A cash deposit with the city in the amount of 125% of the total amount of the developer's share of construction costs in the CFA. The additional 25% above the developer's share of the construction costs shall cover charge orders to the CFA. The city will not pay any interest on cash deposits made with the city;
(3) Letter of credit. A letter of credit in the amount of 125% of the total amount of the developer's share of the construction costs in the CFA. The additional 25% above the developer's share of the construction costs shall cover change orders to the CFA. The expiration date of a letter of credit shall be no less than 90 days after the term of the CFA expires;
(4) Escrow agreement. An escrow agreement between the city, the developer and a financial institution or escrow agent in the amount of 125% of the developer's share of the construction costs in the CFA. The additional 25% above the developer's share of the construction costs shall cover change orders to the community facilities agreement;
(5) Completion agreement. The completion agreement provides that the plat will not be filed until the community facilities are accepted by the city and the developer has submitted proof to the city that the developer has paid all contractors and material suppliers. Completion agreements will not be allowed:
a. For community facilities being constructed outside the boundaries of a plat;
b. For community facilities constructed inside the boundaries of a plat, when the plat is only conveying right-of-way or an easement;
c. When there is city participation in a CFA; or
d. for a primary project if there is a concurrent CFA; and
(6) Statement of appropriated funds. At the discretion of the city, written proof from a governmental entity that sufficient funding for the costs associated with the community facilities has been approved, appropriated, and set aside may be used as a financial guarantee. Only a governmental entity shall be allowed to use a statement of appropriated funds as a financial guarantee for a CFA.
(b) All financial guarantees must be on forms prescribed by or acceptable to the city.
(Ord. 23656-05-2019, § 1, passed 5-7-2019, eff. 6-1-2019)
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